Calculation of the trade size of a currency

  • 11 years ago
If you are in to currency trading business then you must have known that the Forex currency markets have fixed tick sizes. It means the size of the least possible price movement of a currency. On the other hand the forex currency markets have variable tick values. The variable tick values means the value of the least possible price movement of a currency. Therefore it is now easier to understand that calculation of the size of the trade; means the calculation of the amount of currency which can be traded is very complex to understand. Underneath is the method of how to calculate the tick size and tick value of the currency: It is to be known that the tick size is the smallest possible price change whereas the tick value is the value of the possible price change.

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